Filing Taxes

[spagirl1550]

I opened an LLC in July. I am the owner and only employee. Do I file my LLC taxes with my personal on Turbo Tax? Additionally, what items do I need in place for easy and accurate filing?

[John-H2021]

Hello Spagirl,

Your single member LLC will be part of your individual return the you file every year. The income and expenses for the business will be reported on a schedule C.

To make filing easier you should have a profit and loss statement showing all the income the business received and all the expenses associated with making that income.

Here is a link with allot of useful information for a new business owner https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

[pk]

@spagirl1550   Good Luck on your new venture.

1.  Generally ( and depending on your last years tax filings ) you may or may not have to files estimated taxes  each quarter.   Note that there are two types of taxes that are required  to  be current with quarterly ( or be faced with  interest charges  at least ) --- (a)  Federal  Taxes  and  (b) State Taxes  (  unless your state of residence has NO Personal Income Tax).

2.  All self-employed are also responsible for paying Self-Employment Taxes  ( equivalent of FICA for wage earners, called SECA and is at 15.3% of  your gross profits  ).  This does not have to be paid quarterly.

3. You will need to keep good records of  all inventory  that you buy for use  or for sale to customers.  

4. If , as you say , you are sole owner  ( i.e. a single member  LLC ) your  file your return on Schedule-C along with your income tax return.

5. Also note that it is strongly suggested that you have separate  Business Bank account  ( to dela with all expenses and incomes ), a separate  Business Credit Card  and  never, never mingle your personal finances with that of the business.

Please consider  getting yourself familiar with  reports / suggestions from the SBA -- >

Business Guide | U.S. Small Business Administration (sba.gov)  

Again my best wishes for your great success.

[FranklinF]

If a single-member LLC does not elect to be treated as a corporation, the LLC is a "Disregarded Entity," and the LLC's activities should be reflected on its owner's federal tax return. If the owner is an individual, the activities of the LLC will generally be reflected on:

• Schedule C (Profit and Loss from Business - Sole Proprietorship)
• Schedule E (Supplemental Income or Loss - most commonly, but NOT LIMITED TO,  Rental Activities, or
• Schedule F (Profit or Loss from Farming)
  
  Basically, the MOST IMPORTANT thing to do is to, to the very best of your ability, keep track of the income and expenses of operating your business so that you will have an accurate income statement (and balance sheet if applicable) so that it will be easier to prepare and file next year taxes. There are many software that can assist you with the above.
  
  In addition, having accurate financials can assist you in making adjustments to your Estimated Tax Payments, should your circumstances change unexpectedly during the year (example, an increase in sales volume) so that you may be able to mitigate possible interests and penalty payments arising from said changes.
  
  Single member limited liability companies 
  
  **Say "Thanks" by clicking the thumb icon in a post
  **Mark the post that answers your question by clicking on "Mark as Best Answer"